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Intercompany Service Agreement Template for Denmark

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Key Requirements PROMPT example:

Intercompany Service Agreement

I need an Intercompany Service Agreement for IT support services between our Danish parent company and its German subsidiary, with transfer pricing documentation requirements and GDPR compliance, to be effective from March 1, 2025.

What is a Intercompany Service Agreement?

The Intercompany Service Agreement is essential for corporate groups operating in Denmark that engage in internal service provision between affiliated entities. This document is particularly relevant when one group entity provides administrative, technical, financial, or operational services to another group entity. It ensures compliance with Danish transfer pricing regulations, tax laws, and corporate governance requirements while establishing clear operational parameters. The agreement is crucial for documenting arm's length pricing, service levels, and responsibilities, thereby satisfying both regulatory requirements and business needs. It should be used whenever establishing formal service arrangements between group companies, especially when the services are regular, ongoing, and material to operations.

What sections should be included in a Intercompany Service Agreement?

1. Parties: Identification of the service provider and service recipient companies, including registration numbers and addresses

2. Background: Context of the agreement, relationship between the parties, and purpose of the service arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including service levels and delivery specifications

5. Service Provider's Obligations: Key responsibilities and commitments of the service provider

6. Service Recipient's Obligations: Key responsibilities and commitments of the service recipient

7. Fees and Payment Terms: Pricing structure, payment schedule, and invoicing requirements, including transfer pricing methodology

8. Term and Termination: Duration of the agreement and conditions for termination

9. Intellectual Property Rights: Ownership and usage rights of IP created or used in service delivery

10. Confidentiality: Protection of confidential information exchanged between parties

11. Data Protection: GDPR compliance and data handling requirements

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

What sections are optional to include in a Intercompany Service Agreement?

1. Personnel and Subcontractors: Include when services involve dedicated staff or potential subcontracting

2. Quality Assurance: Include for services requiring specific quality standards or certifications

3. Audit Rights: Include when regular auditing of service delivery or pricing is required

4. Business Continuity: Include for critical services requiring disaster recovery planning

5. Insurance: Include when specific insurance coverage is required for service delivery

6. Anti-Corruption and Compliance: Include for services involving international operations or high-risk activities

7. Change Management: Include when services may require frequent modifications or updates

8. Service Credits: Include when specific performance metrics and penalties apply

What schedules should be included in a Intercompany Service Agreement?

1. Schedule 1 - Service Description: Detailed specifications of services, including scope, deliverables, and service levels

2. Schedule 2 - Pricing and Payment Details: Detailed fee structure, cost allocation methods, and transfer pricing documentation

3. Schedule 3 - Service Levels and KPIs: Performance metrics, measurement methods, and reporting requirements

4. Schedule 4 - Data Processing Agreement: GDPR-compliant data processing terms if personal data is processed

5. Schedule 5 - Contact Details and Escalation Procedure: Key contacts and communication protocols

6. Schedule 6 - Transition Plan: Process for service implementation or termination transition

7. Appendix A - Transfer Pricing Documentation: Documentation supporting arm's length nature of pricing

8. Appendix B - Compliance Certificates: Relevant certifications and compliance documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Relevant Industries

Financial Services

Manufacturing

Technology

Healthcare

Energy

Retail

Professional Services

Telecommunications

Pharmaceuticals

Consumer Goods

Transportation and Logistics

Real Estate

Relevant Teams

Legal

Finance

Tax

Compliance

Operations

Treasury

Shared Services

Risk Management

Commercial

Business Development

Internal Audit

Corporate Governance

Relevant Roles

Chief Financial Officer

Head of Legal

Tax Director

Transfer Pricing Manager

Group Controller

Compliance Officer

Operations Director

Service Delivery Manager

Corporate Counsel

Finance Manager

Group Treasurer

Head of Shared Services

Risk Manager

Commercial Director

Business Development Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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